Crude oil prices up as analysts warn of $100 per barrel potential

Two Native American tribes have also filed suit against the Trump administration to stop the Keystone XL pipeline, as the administration also teases a potential move to loosen methane regulations.

By

Nicholas Sakelaris

As the Trump administration continues to grapple with Native American groups on Keystone XL, analysts are warning that oil prices could reach $100 per barrel after the Iran sanctions are reimposed later this year. File Photo by John Angelillo/UPI | License Photo

Sept. 11 (UPI) -- Brent crude oil prices could top $100 a barrel as markets react to U.S. sanctions on Iran this November, an energy expert said.

Brent futures, the international benchmark for crude oil, were trading at $77.37 Tuesday morning, according to CME Group. WTI futures, the U.S. benchmark, were up $1.29 at $68.83 in Tuesday trading.

Oil prices haven't reached $100 a barrel since 2014.

"The higher price will only be blamed on the Trump administration. There's not much anybody can do if the sanctions come in and are enforced properly," Fereidun Fesharaki, founder and chairman of FACTS Global Energy, told CNBC.

"It's a fallacy to believe that U.S. shale can fill the Iran void," he said.

Rules on methane emissions may be loosened

President Donald Trump's latest rollback of Obama-era environmental policies deals with methane gas emissions. The proposal would give drillers a year to do leak inspections instead of six months. Repairs would have to be done within 60 days, not the current limit of 30 days.

Proponents say it gives companies more time to reach remote drilling locations. But environmentalists argue that it allows more harmful emissions into the air in the meantime. The Trump administration has rolled back restrictions on carbon emissions for power plants and vehicles.

The Keystone XL Pipeline saga continues as two Native American tribes sue the Trump administration for failing to adhere to historical treaty boundaries and bypassing environmental impact studies.

The long-delayed pipeline received approval from Trump shortly after he took office. The 1,200 Keystone XL will cross the Canadian border, pass through Montana, North Dakota, South Dakota and Nebraska where it will connect to the existing Keystone pipeline in Steele City, Nebraska. The Rosebud Indian Reservation in South Dakota and the Fort Belknap Indian Community of Montana are suing to stop construction. The tribes want a federal judge in Montana to rescind the 2017 permit.